|
Below is an in-depth analysis and side-by-side comparison of Red Hot & Blue vs Great Steak including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
||
Investment | $380,700 - $1,000,000 | $155,900 - $520,300 |
Franchise Fee | $45,000 | $30,000 |
Royalty Fee | 5% | 6% |
Advertising Fee | - | - |
Year Founded | 1988 | 1983 |
Year Franchised | 1990 | 1986 |
Term Of Agreement | 20 years | 10 years |
Term Of Agreement | 20 years | 10 years |
Renewal Fee | - | $5K |
Business Experience Requirements |
||
Experience | ||
Financing Options |
||
In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/No |
Start-up Costs | No/No | No/No |
Equipment | No/No | No/Yes |
Inventory | No/No | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
||
Training | - | K-Tec is a 5-day training all Kahala franchisees receive and is the companion to brand specific in-store training. It introduces participants to the Kahala culture, level of support provided, and the roles and responsibilities for supporting franchisee and franchisor success. It provides exposure to basic business concepts such as customer service, profitability, quality assurance, inventory, purchasing and distribution, and more. |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Field operations/evaluations | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | Ad slicks, National media, Regional advertising | Ad slicks, National media, Regional advertising |
Operations |
60% of all franchisees own more than one unit Number of employees needed to run franchised unit: 60 Absentee ownership of franchise is NOT allowed. (80% of current franchisees are owner/operators) |
International franchisees required to buy multiple units/master licenses; 35% of all franchisees own more than one unit Number of employees needed to run franchised unit: 10 Absentee ownership of franchise is allowed. (70% of current franchisees are owner/operators) |
Expansion Plans |
||
US Expansion | - | - |
Canada Expansion | No | No |
International Expansion | No | Yes |
We've attracted successful multi-unit franchisees and owners from such brands as Melting Pot, Papa Murphy's, Pizza Hut, Burger King, Hard Times Cafe, and Holiday Inn. Clearly, they know a winning system when they see it. � Exceptional sales-to-investment ratio � 20 Years as a National BBQ Chain in markets such as Texas, N. Carolina, and Washington, DC � Leader in the exploding BBQ Category � Multi-Award Winning, Nationally recognized Restaurants and Sauces